The economic downturn has started to hit the social networking sites.

The bubble in social networking has burst, decisively. LiveJournal, the San Francisco-based arm of Sup, a Russian Internet startup, has cut 12 of 28 U.S. employees — and offered them no severance, we’re told…. The company’s product managers and engineers were laid off, leaving only a handful of finance and operations workers — which speaks to a website to be left on life support.

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